71.Which of the following is incorrect about the management's responsibility to make an assessment of an entity's ability to continue as a going concern?

Group of answer choices

Though there is a history of profitable operations and a ready access to financial resources, management must make its assessment with detailed analysis.

Management's assessment of the going concern assumption involves making a judgment, at a particular point of time, about the future outcomes of events or conditions which are inherently uncertain.

In assessing whether the going concern assumption is appropriate, the management takes into account all the available information for the foreseeable future, which should be at least twelve months from the balance sheet date.

Management should make explicit assessment of its ability to continue as a going-concern entity.

72.Which of the following is not correct concerning a type I and a type II subsequent event?

Group of answer choices

Both a type I and a type II subsequent event may require note disclosure.

A type I is an event that occurred prior to year end, but was discovered after, while a type II is one that arises subsequent to year end.

A type II event may require adjustment to the financial statements and a type I may require note disclosure.

A type I may require adjustment to financial statements while a type II would not.

73.The auditor should normally concentrate on the key factors and assumptions used by management including all of the following except those that are

Group of answer choices

insignificant to the accounting estimates.

deviations from historical patterns.

susceptible to misstatements and biases.

sensitive to variations.

74.Which of the following procedures would an auditor most likely perform to obtain evidence about the occurrence of subsequent events?

Group of answer choices

Comparing the financial statements being reported on with those of the prior period.

Inquiring as to whether any unusual adjustments were made after year-end.

Confirming a sample of material accounts receivable established after year-end.

Investigating personnel changes in the accounting department occurring after year-end.

75.A management representation letter would ordinarily be dated as of the

Group of answer choices

date the financial statements were approved by the client management.

date a letter of audit inquiry is received from the entity's attorney of record.

balance sheet date of the latest period reported on.

date the report is delivered to the entity audited.